Can an Authorized Signer Close an Account?

Understanding roles and powers in financial arrangements, especially bank accounts, is important. Authorized signers offer convenience for daily transactions, but their ability to close an account has specific limitations. This distinction helps account owners and their representatives avoid misunderstandings and ensures proper financial governance.

Defining Authorized Signer Authority

An authorized signer is an individual permitted by the primary account holder to perform specific bank account transactions. They can access the account to make deposits, initiate withdrawals, or check balances. Their authority is determined by the financial institution’s policies and the account agreement.

An authorized signer differs from an account owner. They do not own the funds and act as an agent for the owner. Their authority typically ceases upon the account holder’s death. Account owners retain legal responsibility for all activities conducted by authorized signers.

Powers Regarding Account Closure

Generally, an authorized signer cannot unilaterally close a bank account because they lack ownership rights. Their authority is for managing funds, not terminating the account. Most financial institutions require direct consent, presence, or specific instructions from the primary account owner(s) to close an account.

However, an authorized signer might close an account in specific scenarios. This is possible if the account agreement explicitly grants this power, or if they act under a Power of Attorney (POA) that includes account closure authority.

A POA grants an agent authority to manage the account holder’s finances. For account closure, the POA must specifically state the agent has the power to “close bank accounts” or “terminate banking relationships.” Without this language, financial institutions may decline the request. Always review the account agreement and contact the financial institution for policy clarification.

Process for Closing an Account

If an authorized signer possesses the necessary authority, such as through a Power of Attorney, the account closure process involves several steps. First, gather all pertinent information and documentation. This includes the account number, personal identification, the certified Power of Attorney outlining closure authority, and any required written consent from the primary owner.

Financial institutions typically require specific forms for account closure, available at a branch or online. Accurately complete all fields on these forms, including account information, the authorized signer’s details, and any required owner signatures or authorizations. Some institutions may require a notarized request, especially for mail-in submissions.

Account closure requests can usually be submitted in person at a branch, by mail, or through a secure online portal if offered. After submission, expect confirmation and information regarding processing timelines, typically 24 hours to several business days. Details on how any remaining funds will be disbursed, such as via check or transfer, will also be provided. Request written confirmation once the account has been successfully closed.